US: authorities charged two
Chinese nationals
in a
cryptocurrency scam
that laundered at least $73 million from defrauded victims, the Justice Department said on Friday.
US officials arrested Yicheng Zhang in Los Angeles on Thursday, according to an indictment unsealed in US District Court in California's central district later that day. Daren Li, a dual citizen of China and St.
Kitts and Nevis, was arrested at the Atlanta airport in April.
The US accused the two of being involved in a type of cryptocurrency investment scam known as
pig butchering
, which has become a global billion-dollar industry.
The defendants are alleged to have instructed co-conspirators to open US bank accounts in the name of
shell companies
.
Victims were induced online into depositing money into these accounts - funds that were then laundered through US financial institutions to bank accounts in the Bahamas.
"While
fraud
in the crypto markets takes on many forms and hides in many far-off places, its perpetrators aren't beyond the law's reach," US Deputy Attorney General Lisa Monaco said in a statement.
Li and Zhang are both charged with conspiracy to commit
money laundering
and six counts of international money laundering. If convicted, the defendants face a maximum of 20 years in prison on each count, the Justice Department said.
English (US) ·